An Australian consumer group said Wednesday that Apple has agreed to issue refunds to new iPad buyers who are not satisfied with the device's "4G" speeds.

The new iPad is not compatible with existing Australian 4G LTE and WiMax networks and therefore defaults to 3G speeds. The 4G LTE networks available in Australia operate on the 1800MHz frequency, while the iPad's 4G LTE feature operates on the 700MHz and 2100MHz frequencies. The updated tablet, however, is still advertised as a "Wi-Fi + 4G" device in the country, which prompted a complaint from the Australian Competition and Consumer Commission.

The ACCC said this week that it would sue Apple unless the company altered its iPad marketing in Australia and offered refunds to customers who were "misled" by Cupertino.

Apple has reportedly agreed to do just that, at least for now. In a Wednesday statement, the ACCC said that by April 5, Apple will include the following statement on its promotional materials, website, and online store: "This product supports very fast cellular networks. It is not compatible with current Australian 4G LTE networks and WiMAX Networks." Apple will also distribute signage with the same wording to resellers, the ACCC said.

The company will also email iPad Wi-Fi + 4G buyers with the same statement and give them the option to return the tablet for a refund if they are dissatisfied.

Apple did not immediately respond to a request for confirmation.

As iFixit noted in a recent teardown of the new iPad, Apple does, in fact, include a note inside the new iPad about connectivity in the country. "Important Note: This product is not compatible with Australian 4G LTE networks, and will only operate at up to 3G speeds in Australia," the note reads. Apple does not currently note that on its website, however, so some customers might not be aware of this until they open up their new tablet.

The ACCC said a directions hearing is scheduled for April 16, a mediation has been ordered for April 18, and a hearing on liability will take place on May 2.

Chloe Albanesius has been with PCMag.com since April 2007, most recently as Executive Editor for News and Features. Prior to that, she worked for a year covering financial IT on Wall Street for Incisive Media. From 2002 to 2005, Chloe covered technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's degree in journalism from American University...
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